As students transition to adulthood and begin working, they may benefit from knowing about Individual Development Accounts. IDAs are special savings accounts that can help qualified Hoosiers save money for approved financial goals through a three-to-one-dollar match. The program usually does not count funds set aside in IDAs against the monthly earning limits of TANF and Social Security programs. The program also offers financial counseling to help individuals improve financial literacy and money management skills.

Adults who have a job, earn income, and who are members of a household with an annual income of less than 200% of federal income poverty guidelines could be eligible for an IDA.

How does it work?

• IDA participants are eligible to receive up to $4,500 in state and federal match funds that can go toward an eligible asset goal the local program administrator approves.
• Account holders agree to deposit at least $500 each year.
• The program matches savings at a minimum of $3 for every $1 saved.
• The program has a maximum match limit.
• Account holders must participate in the program for a period—usually 3 years—before participants can spend the money and the match.
• Participants receive one-on-one counseling and 6+ hours of financial education covering topics such as budgeting, savings, credit, banking, taxes, and other money management strategies.

Some examples of eligible asset goals could be buying or fixing up a house, starting a small business, or participating in an education or training program. Local programs vary, so have your students check with their local IDA Program Administrator for details about the program in their area and how to apply.

Resources

• Indiana Housing and Community Development Authority
  • General IDA information
  • Matched Savings Opportunities
• Center on Community Living and Careers
  • Work Incentive Fact Sheet: Individual Development Accounts
  • Hoja Informativa De Incentivos Laborales: Cuentas de Desarrollo Individual
• Prosperity Now

Bonus Tip

The IEP Technical Assistance Center is seeking input from Indiana educators and administrators to plan upcoming Universal training events. If you’d like to help, please complete this linked needs assessment by October 27. The information gained will help organizers plan no-cost Universal trainings regionally throughout the school year.

For questions or concerns, contact Marcee Wilburn at Marcee.Wilburn@indstate.edu.